IDEAS home Printed from https://ideas.repec.org/p/pke/wpaper/pkwp2512.html
   My bibliography  Save this paper

Cyclical patterns of employment, wage inequality and the functional distribution of income

Author

Listed:
  • Peter Skott
  • Adam Aboobaker

Abstract

Like the functional distribution of income, wage inequality is subject to fairly regular cyclical fluctuations. In this paper, we (i) analyze sources of these fluctuations, (ii) present models of endogenous cycles that in- clude heterogeneous labor and wage inequality, (iii) show that these mod- els generate patterns of both wage inequality and the functional income distribution that are in line with the evidence, and (iv) caution against any extrapolation of cyclical patterns to long-term trends and beliefs in expansionary aggregate demand policy as the key instrument to promote greater economic equality.

Suggested Citation

  • Peter Skott & Adam Aboobaker, 2025. "Cyclical patterns of employment, wage inequality and the functional distribution of income," Working Papers PKWP2512, Post Keynesian Economics Society (PKES).
    • Handle: RePEc:pke:wpaper:pkwp2512
    as

    Download full text from publisher

    File URL: https://postkeynesian.net/media/working-papers/PKWP2512.pdf
    File Function: First version, 2025
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Wage inequality; Goodwin cycles; functional distribution; aggregate demand policy;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pke:wpaper:pkwp2512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jo Michell (email available below). General contact details of provider: https://edirc.repec.org/data/pksggea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.